Which of the following would not be a successful means of avoiding double tax on the earnings of a closely-held corporation?
A. Having a shareholder lease warehouse space to the corporation at a reasonable rental rate.
B. Having the corporation employ the shareholder at a reasonable compensation.
C. Having the corporation pay the shareholder a fixed percentage of the par value of the stock the shareholder owns.
D. Having a shareholder lend money to the corporation at a reasonable rate of interest.
Answer: C
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A) top-down budget B) customer-mix budget C) objective and task budget D) bottom-up budget E) total consumer budget
The parties to a sales contract may agree as to the time, place, and manner of delivery
Indicate whether the statement is true or false
When profit-sharing takes a broad view of what needs to be done to make the organization more effective, it may encourage
A. a knowledge of business. B. problem-solving orientation. C. learning and flexibility. D. individual competition. E. a sense of ownership.
A fundamental problem of the modern corporation is the conflict of interests between managers, shareholders, and stakeholders
Indicate whether the statement is true or false